The notorious MEV sandwich bot named “arsc” has managed to amass approximately $30 million from Solana users in the past two months through MEV attacks.
During an MEV sandwich attack, the attacker strategically places the victim’s transaction between their own two transactions to manipulate prices and make a profit. By purchasing the victim’s token at a lower price than its market value and then selling it in the same block, the attacker is able to profit from the user’s transaction.
Ben Coverston, the founder of the cryptocurrency firm MRGN Research, revealed in a post on X on June 15 that “arsc” has been operating discreetly while generating profits from the Solana network users. Coverston also pointed out that one of the bot’s main wallet addresses, “9973h…zyWp6,” is likely used for cold storage due to its inactivity and behavior.
According to SolanaFM, this wallet holds over $19 million in total funds, consisting of $17 million in Solana (SOL) tokens, $1.1 million in Circle’s USD Coin (USDC) stablecoin, as well as small amounts of wrapped-SOL (wSOL), Cringe Coin (CRINGE), and Kabosu (KAB).
Another wallet address, “Ai4zq…VXKKT,” is more actively involved in decentralized finance activities, converting SOL into USDC through JUP DCA and holding significant positions in Kamino and various LSTs. This wallet holds over $9.9 million in total funds, primarily comprising non-SOL tokens.
Coverston identified a third wallet address, “BCbrp…vi58q,” as arsc’s “main SOL bank,” as it utilizes multiple signers and tippers to execute the sandwich attacks. The combined funds across the three wallets amount to $29.8 million at current prices, indicating that the operator behind arsc is attempting to maintain a low profile.
MEV sandwich bots, like arsc, employ sophisticated algorithms to identify and capitalize on profit-making opportunities. These activities are not exclusive to Solana, as they are also prevalent among maximal extractible value bots on Ethereum, with over $1.38 billion being drained from Ethereum users by April 2023, as reported by MEVBlocker.
In conclusion, investors should exercise caution when entering the Solana memecoin market, as MEV attacks pose a significant risk to unsuspecting users.